Are other businesses licensed by Buff City Soap considered 'Competitive Businesses'?

According to the 2025 Buff City Soap Franchise Disclosure Document, a "Competitive Business" is defined as any retail establishment that Buff City Soap determines to be the same as or substantially similar to its makeries. This includes personal body care product retail establishments or chains that feature products free of artificial detergents, surfactants, dyes, or harsh chemicals. It also includes any retail establishment where soaps, lotions, bath bombs, and similar facial, body, and hair care products collectively account for 25% or more of its average monthly gross sales.

However, the definition of a Competitive Business specifically excludes other businesses that are licensed by Buff City Soap or any of its affiliates. This means that if Buff City Soap licenses another business, that business will not be considered a Competitive Business under the terms of the franchise agreement. This exclusion also applies to a franchisee's existing brands.

This distinction is important because the franchise agreement includes non-compete clauses that restrict franchisees from owning, operating, or being involved with Competitive Businesses during the term of the agreement and for a period of time after its expiration or termination. Therefore, the exclusion of Buff City Soap-licensed businesses from the definition of Competitive Business provides clarity and ensures that franchisees are not restricted from engaging with other parts of the Buff City Soap franchise system.